AC Milan have confirmed an agreement has been reached to terminate the contract of their former coach Sinisa Mihajlovic amid speculation linking the 47-year-old with Torino.
Mihajlovic was relieved of his duties last month but, having signed a two-year contract when he was appointed last summer, he is still on the wage bill, along with Clarence Seedorf and Filippo Inzaghi.
The Serb has been strongly linked with a move to Serie A rivals Torino, though, he has now reached an agreement with the club that will allow him to take on a new role from July 1.
"AC Milan announces that they have terminated, with effect from 30/06/2016, the contract with Sinisa Mihajlovic," a statement on the Rossoneri's official website read. "The club wishes him the best of luck for his future career."
He is tipped to take the place of Giampiero Ventura in Turin, with the current Torino coach widely expected to take charge of Italy when Antonio Conte leaves after Euro 2016.
Mihajlovic, who has previously coached Bologna, Catania, Fiorentina and Sampdoria, was relieved of his duties in the wake of a 2-1 defeat to Juventus that left Milan sixth in Serie A.
Under his successor Cristian Brocchi, Milan won only two of their final six games of the season to finish seventh and miss out on a place in Europe for a third straight season -- their worst run in the era of Silvio Berlusconi's 30-year ownership.
They had the chance to secure a place in the Europa League by winning the Coppa Italia on Saturday but were defeated 1-0 after extra time.
Even so, Brocchi has not given up hope of staying in charge next season.
"The result was not what we wanted, but the attitude was," he told Canale 5. "Milan showed that they can compete. The president [Berlusconi] paid his compliments for the way we played -- we played with the right spirit.
"I think my chances [of keeping the job] have increased after this game. I hope that people could see a bit of my attitude coming through. Yes, I'm happy with this game."
Berlusconi is reported to be pleased with his team's performance at the Stadio Olimpico, although he would not give any assurances about Brocchi's future.